Liquid staking protocol Lido now supports Solana’s SOL token

Lido Finance, a liquid staking protocol which presently supports Ethereum 2.0 and Terra blockchains, has expanded to Solana. The information means Lido’s customers can now stake Solana’s native SOL token by the protocol and obtain stSOL in return.

With centralized staking companies reminiscent of crypto exchanges, once you stake a token, it will get locked up and can’t be used for different actions until withdrawn. Lido known as a liquid staking protocol as a result of it supplies artificial tokens reminiscent of stSOL, stETH, and stLUNA in opposition to staked tokens, which might then be utilized in decentralized finance (DeFi) purposes for additional yield-generating alternatives. So whereas your tokens are staked, you should have equal synethetic variations of the identical tokens that you should utilize within the meantime.

DeFi tasks that may initially help stSOL embody Serum, Raydium, Saber Labs, Phantom, and SolFlare, Kasper Rasmussen, chief advertising officer at Lido, informed The Block. He added that these tasks will let stSOL holders present liquidity and earn extra rewards on prime of normal staking rewards that they are going to get by Lido.

Lido is presently highly regarded for staking ether (ETH). Rasmussen stated the protocol has change into one of many largest ETH staking addresses, staking greater than 1% of all ETH. “We look ahead to related development on Solana,” he stated.

Other fashionable staking companies for ETH embody Kraken, Binance, Staked, Stakefish, Bitcoin Suisse, Huobi, and Bitfinex in that order, in response to knowledge compiled by The Block Research.

Lido plans to additionally launch a staking resolution for the Polkadot and Polygon blockchains. Rasmussen stated developments groups MixBytes and Shard Labs are working for the Lido DAO to carry staking companies for DOT and MATIC tokens, respectively. The Solana staking resolution was developed in partnership with Chorus One, he stated.

Lido is backed by notable backers together with Coinbase Ventures and Paradigm and the venture has raised at the least $75 million in complete funding thus far in two rounds. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is supplied for informational functions solely. It isn’t supplied or meant for use as authorized, tax, funding, monetary, or different recommendation.

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